Parabolic Moves have NEVER ended well …

Below you’ll find charts showing the parabolic blow-off of the NASDAQ, CTX (housing), LEH (banking/investments), JEC (oil services), Green Mountain Coffee (GMCR) and Apple (right before it lost 50% of it’s price – remember?)

The reason I post these charts is because when I look at IBB, NKE, XLV, etc I see the SAME PATTERN.

Again, Parabolic Advances have NEVER ended well … Untitled 5-6-12-Bart-Bubbles

here’s the physics:

hw-honeybee

once velocity hit 8 m/s and around 2.5 seconds into it IT COULD NOT GO ANY HIGHER AND THE VELOCITY COLLAPSED.  Folks, at a certain point the lack of liquidity and the parabolic nature of anything will prove Sir Isaac Newton correct …

Sir Issac Newton and $AAPL Fell From the Tree

so, perhaps we are at 3-4/ms at time 3 … but soon, in the near future these stocks/indices/interest rates will hit 8 m/s and 2.5 seconds and then the drop will be vicious.

A monster move …

a lot of work goes  into finding high probability set-ups … this was our last post on Coffee Futures and SBUX.  I had been trying to find an end (not trying to call a top but simply look for a pattern) to the SBUX run.  Ratio analysis was finally sealed the deal for me …

SBUX and Coffee Futures

the cliff notes was that it wasn’t the price of coffee but the relative strength (COFFEE/SBUX) that had synced nicely.

the Coffee futures came down to the monthly node ID’d here:

coffee futuresand the result …

Main20140303043121

folks, this is a monster move!  so what happened to the ratio?

the COFFEE/SBUX ratio before:

coffee sbux ratio

the COFFEE/SBUX ratio after:

Main20140303045517

here’s the charts of SBUX and GMCR

Main20140303050326 Main20140303050250

I love this chart …

the WX in Northern Virginia today is just down right ugly … snow, winter mix, wind has picked up.  Have been doing posts, checking on the wife w/ a herniated disk and the 9 year old w/ a sinus infection and then playing Pink Floyd looking for patterns.  As I was going thru the charts I realized 1) I have saved way too many of them … and 2) there are some amazing ones out there …

here’s a chart that simply shows the aftermath of parabolic rises … isn’t it a beauty?

May 04 AAPL and the genesis of bubbleshere’s the updated chart …

parabolic rises have very powerful corrections ...
parabolic rises have very powerful corrections …

and here’s the update on GMCR – amazing !!! I haven’t looked at it in a couple years!Main20140215145916

CLIFF NOTES: many, many, many charts are showing these parabolic rises … Sir Isaac Newton has yet to be proven wrong w/ his theory of gravity!